Kick this tenant out or not? Dealing MMJ among other things…

[Gerald Schipper]

Hi all, I need some feedback please. 
My first long distance rental has a relatively new tenant in it. I happened to be in town when they needed some maintenance done and swung by to help mitigate the issue. While I was there, I noticed that this person is clearly selling MMJ based on the gallon bags filled with it, the scale, etc. Worse yet (for my property) they’ve been smoking in the house as is apparent from the faint smell, and the ash tray I had to step over, and the battery taken out of one of the smoke alarms. It was noted VERY extensively that there will be no smoking in this property and it’s absolutely in the lease. Furthermore the lawn was 7-8 inches high with no plan to have it cut for another 2 weeks!
This tenant pays on time, and actually keeps the place quite well aside from the smoking and lawn issue. I have not confronted the tenant yet.

HERE’S THE KICKER; The tenant would like to buy the property, and I’d like to sell it. BUT I’m not sure they’ll be able to as their income is on a 1099 and I’m sure bank deposits are being made that can’t be explained easily. Tenant has half the value of the property in the bank however, has decent credit, and a good and steady job (albeit a 1099). I’m not interested in carrying the note. I also bought this property in Oct of 2021 and would like to prevent from taking a large short term gain on it. But if I could sell directly to the tenant it would also save me $9k in realtor fees. 

What would you do with this? This is a nice asset, not a “career rental” type home. I feel somebody who is selling weed isn’t at all likely to stop selling it nor smoking it in the house, especially once winter comes.

Thanks! 

[Nathan Gesner]

I can't think of any state that allows an individual to have "gallon bags" of product and scales. That's clearly a distributor.

He's paying rent on time because he's flush with cash from dealing drugs. But that's only good until he ends up getting busted.

The easy road seems to be selling the house to him, but I don't like dealing with criminals. If they break the rules in one area, they'll break them in others. I would have reported him to the police and then given him notice of termination. Get him out and put the house on the market.